Thai agricultural exporters are facing growing pressure to prove that their products are not linked to deforestation, illegal land use or poor labour practices, as European sustainability and due diligence rules are becoming important issues in the current global supply chains.
The impact is likely to affect major export sectors, such as rubber and palm oil, in which supply chains often involve many small farmers, middlemen and agricultural land spread across wide and diverse areas. For Thailand, the challenge is to meet environmental standards and backing it with reliable data.
The issue was reviewed during a panel discussion yesterday, as part of a ceremony to announce and submit policy recommendations aimed at strengthening Thailand’s capabilities to meet sustainable international trade standards.
The event was held under the FIT for FAIR Thailand project, organised by the Thailand Environment Institute and GIZ Thailand, seeking to help the country prepare for the European Union’s sustainable trade laws and support Thai businesses in adapting to changing global supply-chain requirements.
From left to right: Dr. Jeeranuch Sakkhamduang, an expert from the Thai Environment Institute / Dr. Suwit Chaikiattiyos, executive director of the Agricultural Research and Development Agency / Ditdadech Wattanaporn, Deputy Governor for Operations at the Rubber Authority of Thailand / Worapong Cherngwiwatkit of Thai Eastern Group Holdings Plc
The project focuses mainly on helping Thailand to prepare for the EU Deforestation Regulation, or EUDR, and wider due diligence rules that are changing the way global supply chains work.
According to the panel, the project is meant to bring farmers, businesses and government agencies onto the same page, as Thailand prepares for trade rules linked to sustainability and deforestation. The aim is to ensure that Thai agricultural products can continue to reach key export markets without facing unnecessary disruption.
Under the EU Deforestation Regulation, exporters will have to prove that covered products do not come from recently deforested land and that they comply with relevant laws. Without reliable traceability, Thai exporters could face tougher questions from European buyers, increased paperwork costs, shipment delays or even the risk of losing market access.
Dr. Suwit Chaikiattiyos, executive director of the Agricultural Research and Development Agency, said Thailand is developing a National EUDR Single Window to support traceability and geolocation data. The platform is expected to help operators record supply-chain information, assess risks related to deforestation and legality and prepare due diligence reports.
Still, much of the practical burden could fall on farmers and small businesses. Farmers may be asked to provide more details about their land, including land documentation, production methods and buyers. For many smallholders, especially those with limited access to digital tools, these new requirements could become another barrier to joining export supply chains.
The rubber sector shows how big the challenge is. Ditdadech Wattanaporn, Deputy Governor for Operations at the Rubber Authority of Thailand, said the sector covers farmers, traders, processors and exporters, with a large number of smallholdings involved. The authority has been working on traceability systems, including Thai Track Traceability, or ThaiTrac, to help connect data and reduce confusion over different standards.
Worapong Cherngwiwatkit, of Thai Eastern Group Holdings Plc, said companies must deal with mixed raw materials from middlemen, unclear land documentation, farmers’ concerns about paperwork and the need to collect information on labour and environmental practices.
From left to right: Dr. Wijarn Simachaya, President of the Thailand Environment Institute / Krit Uttamawetin, Deputy Permanent Secretary of the Ministry of Agriculture and Cooperatives
These challenges suggest that compliance cannot be handled only at the factory or export stage. It must begin at the farm level, where data is often incomplete or fragmented.
The FIT for FAIR Thailand project has produced 14 policy recommendations and a national traceability roadmap covering short-, medium- and long-term measures. It calls for better data systems, stronger coordination among state agencies and support for due diligence on environmental and human rights issues.
The policy recommendations were formally handed over by a project working group led by Dr. Wijarn Simachaya, President of the Thailand Environment Institute, to Krit Uttamawetin, Deputy Permanent Secretary of the Ministry of Agriculture and Cooperatives.
